Amended 1982, 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(a), repealed amendments made by Pub. L. 97–248. See 1982 Amendment note below.
- 1982 Pub. L. 97-248 Pub. L. 97–248, §§ 303(b), 308(a), provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, a new subsec. (e) is added. Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted.
Forms: Form 1099-OID; Form 1042-S; Form 1096; Form W-9
Final rules 21
(a) Requirement of reporting Every person—
Amended 1976, 1982, 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(e)(1), struck out par. (3) which related to persons required under subchapter B of chapter 24 to withhold tax on the payment of interest and, in provisions following par. (2), substituted “and the name and address of the person to whom paid” for “, tax deducted and withheld, and the name and address of the person to whom paid or from whom withheld”.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 309(a), redesignated subpars. (A) and (B) of former par. (1) as pars. (1) and (2), respectively, in par. (2) as so redesignated inserted “(as so defined)” after “payments of interest”, substituted par. (3) for former par. (1)(C) which described corporations with evidence of outstanding indebtedness in registered form for which during any calendar year there was at least $10 of original issue discount includible in the gross income of a holder under section 1232(a)(3) of this title without regard to subpar. (B) thereof, substituted “of such payments, tax deducted and withheld, and the name and address of the person to whom paid or from whom withheld” for “of such payments and such aggregate amount includible in the gross income of any holder and the name and address of the person to whom paid or such holder” in provisions following par. (3), formerly following par. (1)(C), and struck out former par. (2), which directed persons making aggregate interest payments of less than $10 to another person during any calendar year to report such payments and the recipients when required by the Secretary, and former par. (3), which required all corporations making payments of any amount of interest other than as defined in subsec. (b) to report such payments and the recipients when required by the Secretary.
- 1976 Pub. L. 94-455 Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary” wherever appearing.
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(1) who makes payments of interest (as defined in subsection (b)) aggregating $10 or more to any other person during any calendar year, or
Amended 1969
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 413(c), added subpar. (C).
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(2) who receives payments of interest (as so defined) as a nominee and who makes payments aggregating $10 or more during any calendar year to any other person with respect to the interest so received,
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shall make a return according to the forms or regulations prescribed by the Secretary, setting forth the aggregate amount of such payments and the name and address of the person to whom paid.
(b) Interest defined
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 309(a), substituted “subsection (a)” for “subsections (a)(1) and (2)” in provisions preceding subpar. (A), in subpar. (A) substituted “any obligation (i) issued in registered form, or (ii) of a type offered to the public, other than any obligation with a maturity (at issue) of not more than 1 year which is held by a corporation” for “evidences of indebtedness (including bonds, debentures, notes, and certificates) issued by a corporation in registered form, and, to the extent provided in regulations prescribed by the Secretary, interest on other evidences of indebtedness issued by a corporation of a type offered by corporations to the public” in subpar. (C) inserted “industrial loan association or bank” to list of payors of interest, in subpar. (E) substituted “brokers (as defined in section 6045(c))” for “stockbrokers and dealers in securities”, added subpars. (F) and (G), in par. (2) substituted “subsection (a)” for “subsections (a)(1) and (2)” in provisions preceding subpar. (A), added subpar. (A), redesignated former subpar. (A) as (B), in subpar. (B) as so redesignated inserted reference to exemption under any provision of law, added subpar. (C), redesignated former subpar. (B) as (D), in subpar. (D) as so redesignated substituted provisions that the subpar. operates except to the extent otherwise provided in regulations or in subpar. (C) for provisions that the subpar. operates to the extent provided in regulations, added cls. (i) and (ii), designated existing provisions as cls. (iii) to (v), in cl. (iii) as so designated inserted specification of not being engaged in trade or business in the United States, in cl. (iv) as so designated inserted specification of exemption under subchapter A of chapter 3, redesignated former subpar. (C) as (E), and added par. (3).
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(1) General rule For purposes of subsection (a), the term “interest” means—
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1901(b)(6)(A), 1906(b)(13)(A), substituted “section 103(a)” for “section 103(a)(1) or (3)”, and struck out “or his delegate” after “Secretary” wherever appearing.
(A) interest on any obligation—
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(i) issued in registered form, or
(ii) of a type offered to the public,
other than any obligation with a maturity (at issue) of not more than 1 year which is held by a corporation,
(C) amounts (whether or not designated as interest) paid by a mutual savings bank, savings and loan association, building and loan association, cooperative bank, homestead association, credit union, industrial loan association or bank, or similar organization, in respect of deposits, investment certificates, or withdrawable or repurchasable shares,
(D) interest on amounts held by an insurance company under an agreement to pay interest thereon,
(E) interest on deposits with brokers (as defined in section 6045(c)),
(F) interest paid on amounts held by investment companies (as defined in section 3 of the Investment Company Act of 1940 (15 U.S.C. 80a–3)) and on amounts invested in other pooled funds or trusts, and
(G) to the extent provided in regulations prescribed by the Secretary, any other interest (which is not described in paragraph (2)).
(2) Exceptions For purposes of subsection (a), the term “interest” does not include—
Amended 1984, 2006
- 2006 Pub. L. 109-222 Pub. L. 109–222, § 502(a), redesignated subpar. (D) as (C).
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 474(r)(29)(J), struck out subpar. (E) which related to amounts on which the person making payments was required to deduct and withhold a tax under section 1451 (relating to tax-free covenant bonds), or would have been so required but for section 1451(d) (relating to benefit of personal exemptions).
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(A) interest on any obligation issued by a natural person,
Amended 1976
- 1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1901(b)(6)(A), 1906(b)(13)(A), substituted “section 103(a)” for “section 103(a)(1) or (3)”, and struck out “or his delegate” after “Secretary” wherever appearing.
(B) except to the extent otherwise provided in regulations—
Amended 1976, 1983, 2006
- 2006 Pub. L. 109-222 Pub. L. 109–222, § 502(a), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “interest on any obligation if such interest is exempt from tax under section 103(a) or if such interest is exempt from tax (without regard to the identity of the holder) under any other provision of this title,”.
- 1983 Pub. L. 97-424 Pub. L. 97–424 substituted “this title” for “law”.
- 1976 Pub. L. 94-455 Pub. L. 94–455, §§ 1901(b)(6)(A), 1906(b)(13)(A), substituted “section 103(a)” for “section 103(a)(1) or (3)”, and struck out “or his delegate” after “Secretary” wherever appearing.
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(i) any amount paid to any person described in paragraph (4), or
(ii) any amount described in paragraph (5), and
(C) except to the extent otherwise provided in regulations, any amount not described in subparagraph (B) of this paragraph which is income from sources outside the United States or which is paid by—
Amended 1983, 2006
- 2006 Pub. L. 109-222 Pub. L. 109–222 redesignated subpar. (D) as (C) and substituted “subparagraph (B)” for “subparagraph (C)”.
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(e)(2), amended subpar. (C) generally, substituting in cl. (i) “person described in paragraph (4), or” for “person referred to in paragraph (2) of section 3452(c) (other than subparagraphs (J) and (K) thereof), or” and in cl. (ii) “described in paragraph (5),” for “described in section 3454(a)(2)(D) or (E),”.
(i) a foreign government or international organization or any agency or instrumentality thereof,
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(ii) a foreign central bank of issue,
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(iii) a foreign corporation not engaged in a trade or business in the United States,
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(iv) a foreign corporation, the interest payments of which would be exempt from withholding under subchapter A of chapter 3 if paid to a person who is not a United States person, or
(v) a partnership not engaged in a trade or business in the United States and composed in whole of nonresident alien individuals and persons described in clause (i), (ii), or (iii).
(3) Payments by United States nominees, etc., of United States person If, within the United States, a United States person—
(A) collects interest (or otherwise acts as a middleman between the payor and payee) from a foreign person described in paragraph (2)(D) or collects interest from a United States person which is income from sources outside the United States for a second person who is a United States person, or
notwithstanding paragraph (2)(D), such payment shall be subject to the requirements of subsection (a) with respect to such second United States person.
(4) Persons described in this paragraph A person is described in this paragraph if such person is—
Amended 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(e)(2)(B), added pars. (4) and (5).
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(A) a corporation,
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(B) an organization exempt from taxation under section 501(a) or an individual retirement plan,
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(C) the United States or any wholly owned agency or instrumentality thereof,
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(D) a State, the District of Columbia, a possession of the United States, any political subdivision of any of the foregoing, or any wholly owned agency or instrumentality of any one or more of the foregoing,
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(E) a foreign government, a political subdivision of a foreign government, or any wholly owned agency or instrumentality of any one or more of the foregoing,
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(F) an international organization or any wholly owned agency or instrumentality thereof,
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(G) a foreign central bank of issue,
(H) a dealer in securities or commodities required to register as such under the laws of the United States or a State, the District of Columbia, or a possession of the United States,
(I) a real estate investment trust (as defined in section 856),
(J) an entity registered at all times during the taxable year under the Investment Company Act of 1940,
(K) a common trust fund (as defined in section 584(a)), or
(L) any trust which—
(i) is exempt from tax under section 664(c), or
(ii) is described in section 4947(a)(1).
(5) Amounts described in this paragraph An amount is described in this paragraph if such amount—
Amended 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(e)(2)(B), added pars. (4) and (5).
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(A) is subject to withholding under subchapter A of chapter 3 (relating to withholding of tax on nonresident aliens and foreign corporations) by the person paying such amount, or
(B) would be subject to withholding under subchapter A of chapter 3 by the person paying such amount but for the fact that—
(i) such amount is income from sources outside the United States,
(ii) the payor thereof is exempt from the application of section 1441(a) by reason of section 1441(c) or a tax treaty,
(iii) such amount is original issue discount (within the meaning of section 1273(a)), or
Amended 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1803(a)(14)(C), substituted “section 1273(a)” for “section 1232(b)(1)”.
(iv) such amount is described in section 871(i)(2).
Amended 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1214(c)(4), added cl. (iv).
(c) Statements to be furnished to persons with respect to whom information is required
Amended 1969, 1982, 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 1501(c)(5), in amending subsec. (c) generally, substituted “information is required” for “information is furnished” in subsection heading and, in text, substituted references to persons required to make a return for former references to persons making a return and struck out provisions that no statement was required if the aggregate amount of payments to the person shown on the return was less than $10.
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 309(a), substituted “subsection (a)” for “subsection (a)(1)” wherever appearing, designated provision before former par. (1) as par. (1), redesignated former pars. (1) and (2) as subpars. (A) and (B), respectively, added subpar. (C), designated first sentence after former par. (2) as par. (2), designated second sentence after former par. (2) as par. (3), in par. (3) as so designated inserted “with respect to payments of interest to any person” after “No statement”, struck out “, or the aggregate amount includible in the gross income of,” after “payments to”, and substituted “paragraph (1) or (2)” for “subparagraph (A), (B), or (C)” after “with respect to”.
- 1969 Pub. L. 91-172 Pub. L. 91–172, § 413(d), further qualified requirement to furnish statement by reference to aggregate amount includible in gross income.
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(1) In general Every person required to make a return under subsection (a) shall furnish to each person whose name is required to be set forth in such return a written statement showing—
Amended 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 102(e)(3), struck out subpar. (C) which related to aggregate amount of tax deducted and withheld with respect to the person under subchapter B of chapter 24.
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(A) the name, address, and phone number of the information contact of the person required to make such return, and
Amended 1996
- 1996 Pub. L. 104-168 Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”.
(2) Time and form of statement The written statement under paragraph (1)—
Amended 1983
- 1983 Pub. L. 98-67 Pub. L. 98–67, § 108(a), amended par. (2) generally, inserting provision allowing the written statement to be furnished either in person or in a separate mailing by first-class mail and authorizing the Secretary to prescribe by regulation the form that the written statement must take.
(A) shall be furnished (either in person or in a statement mailing by first-class mail which includes adequate notice that the statement is enclosed) to the person on or before January 31 of the year following the calendar year for which the return under subsection (a) was required to be made, and
(B) shall be in such form as the Secretary may prescribe by regulations.
(d) Definitions and special rules For purposes of this section—
Amended 1982
- 1982 Pub. L. 97-248 Pub. L. 97–248, § 309(a), added subsec. (d).
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(1) Person The term “person” includes any governmental unit and any agency or instrumentality thereof and any international organization and any agency or instrumentality thereof.
(2) Obligation The term “obligation” includes bonds, debentures, notes, certificates, and other evidences of indebtedness.
(3) Payments by governmental units In the case of payments made by any governmental unit or any agency or instrumentality thereof, the officer or employee having control of the payment of interest (or the person appropriately designated for purposes of this section) shall make the returns and statements required by this section.
(4) Financial institutions, brokers, etc., collecting interest may be substituted for payor To the extent and in the manner provided by regulations, in the case of any obligation—
(A) a financial institution, broker, or other person specified in such regulations which collects interest on such obligation for the payee (or otherwise acts as a middleman between the payor and the payee) shall comply with the requirements of subsections (a) and (c), and
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(B) no other person shall be required to comply with the requirements of subsections (a) and (c) with respect to any interest on such obligation for which reporting is required pursuant to subparagraph (A).
(5) Interest on certain obligations may be treated on a transactional basis
(A) In general To the extent and in the manner provided in regulations, this section shall apply with respect to—
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(i) any person described in paragraph (4)(A), and
(ii) in the case of any United States savings bonds, any Federal agency making payments thereon,
on any transactional basis rather than on an annual aggregation basis.
(B) Separate returns and statements If subparagraph (A) applies to interest on any obligation, the return under subsection (a) and the statement furnished under subsection (c) with respect to such transaction may be made separately, but any such statement shall be furnished to the payee at such time as the Secretary may prescribe by regulations but not later than January 31 of the next calendar year.
(C) Statement to payee required in case of transactions involving $10 or more In the case of any transaction to which this paragraph applies which involves the payment of $10 or more of interest, a statement of the transaction may be provided to the payee of such interest in lieu of the statement required under subsection (c). Such statement shall be provided during January of the year following the year in which such payment is made.
(6) Treatment of original issue discount
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(A) In general Original issue discount on any obligation shall be reported—
Amended 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 42(a)(14)(A), substituted “section 1272” for “section 1232A” in two places.
(i) as if paid at the time it is includible in gross income under section 1272 (except that for such purpose the amount reportable with respect to any subsequent holder shall be determined as if he were the original holder), and
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(ii) if section 1272 does not apply to the obligation, at maturity (or, if earlier, on redemption).
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In the case of any obligation not in registered form issued before January 1, 1983, clause (ii) and not clause (i) shall apply.
(B) Original issue discount For purposes of this paragraph, the term “original issue discount” has the meaning given to such term by section 1273(a).
Amended 1984
- 1984 Pub. L. 98-369 Pub. L. 98–369, § 42(a)(14)(B), substituted “section 1273(a)” for “section 1232(b)(1)”.
(7) Interests in REMIC’s and certain other debt instruments
Amended 1986
- 1986 Pub. L. 99-514 Pub. L. 99–514, § 674, added par. (7).
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(A) In general For purposes of subsection (a), the term “interest” includes amounts includible in gross income with respect to regular interests in REMIC’s (and such amounts shall be treated as paid when includible in gross income under section 860B(b)).
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1006(v), inserted parenthetical phrase relating to amounts treated as paid when includible in gross income under section 860B(b).
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(B) Reporting to corporations, etc. Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph and any other debt instrument to which section 1272(a)(6) applies, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
(C) Additional information Except as otherwise provided in regulations, any return or statement required to be filed or furnished under this section with respect to interest income described in subparagraph (A) and interest on any other debt instrument to which section 1272(a)(6) applies shall also provide information setting forth the adjusted issue price of the interest to which the return or statement relates at the beginning of each accrual period with respect to which interest income is required to be reported on such return or statement and information necessary to compute accrual of market discount.
Amended 1988
- 1988 Pub. L. 100-647 Pub. L. 100–647, § 1006(t)(24), substituted “the adjusted issue price” for “the issue price”.
(D) Regulatory authority The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
(8) Reporting of credit on clean renewable energy bonds
Amended 2005
- 2005 Pub. L. 109-58 Pub. L. 109–58 added par. (8).
(A) In general For purposes of subsection (a), the term “interest” includes amounts includible in gross income under section 54(g) [OLRC note: See References in Text note below.] and such amounts shall be treated as paid on the credit allowance date (as defined in section 54(b)(4)).
Amended 2005, 2018
- 2018 Pub. L. 115-141 Pub. L. 115–141 struck out “or 1400N(l)(6)” after “section 54(g)” and “or 1400N(l)(2)(D), as the case may be” after “section 54(b)(4)”.
- 2005 Pub. L. 109-135 Pub. L. 109–135 inserted “or 1400N(l)(6)” after “section 54(g)” and “or 1400N(l)(2)(D), as the case may be” after “section 54(b)(4)”.
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(B) Reporting to corporations, etc. Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A), subsection (b)(4) shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i) of such subsection.
(C) Regulatory authority The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.
(9) Reporting of credit on qualified tax credit bonds
Amended 2008
- 2008 Pub. L. 110-246 Pub. L. 110–246, § 15316(b), added par. (9).
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(A) In general For purposes of subsection (a), the term “interest” includes amounts includible in gross income under section 54A 1 and such amounts shall be treated as paid on the credit allowance date (as defined in section 54A(e)(1)).1
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(B) Reporting to corporations, etc. Except as otherwise provided in regulations, in the case of any interest described in subparagraph (A) of this paragraph, subsection (b)(4) of this section shall be applied without regard to subparagraphs (A), (H), (I), (J), (K), and (L)(i).
(C) Regulatory authority The Secretary may prescribe such regulations as are necessary or appropriate to carry out the purposes of this paragraph, including regulations which require more frequent or more detailed reporting.